COLOGNE, GERMANY, Sep. 26, 2006 -
SanDisk® Corporation (NASDAQ:SNDK) today introduced the 12-
and 16-gigabyte (GB) SanDisk Extreme® III CompactFlash® cards to
its award-winning Extreme III performance line, making these the
highest capacity cards in the world. The new high-performance,
large-capacity cards are ideal for professional photographers who
shoot RAW or high-resolution JPG files and need the performance,
reliability and capacity to capture these large files.

The new SanDisk Extreme III CompactFlash cards can
also be used with the Grass Valley™ Infinity Series
Digital Media Camcorder, the first camcorder introduced in the
broadcast industry that uses non-proprietary, removable,
solid-state flash memory cards as recording and playback media.

The new cards will have minimum write and read speeds of 20
megabytes per second (MB/sec.) and will ship to photo retailers by
the end of the year. The announcement was made at the Photokina
trade show where SanDisk is demonstrating products in Hall 6, Stand
D78/E79.

"The beauty of using large capacity cards like the 12- and 16GB
SanDisk Extreme III cards is the freedom to shoot without worrying
about filling up the card," said Jonathan Torgovnik, contract
photographer for Newsweek magazine and international freelance
photographer. "I shoot in RAW mode almost exclusively and the large
files can fill up a card very quickly. Having a large capacity card
lets me focus on what I love to do-take pictures."

Tanya Chuang, SanDisk's senior retail product marketing manager,
said, "The SanDisk Extreme III line combines exceptional
performance and reliability with large capacities to provide an
ideal storage solution for professional photographers that meets
their shooting and workflow requirements. We believe that SanDisk
will continue to be the preferred choice by professional
photographers based on our capacity and performance advantages as
well as our commitment to the digital photography market as a
whole."

SanDisk Extreme USB 2.0 Readers Improve
Workflow

While the speed of the card is important for in-camera
performance, card-to-computer transfer rates are becoming an
increasingly important workflow consideration. The time it takes to
transfer images to a computer can be a bigger bottleneck now that
card capacities have expanded into the multi-gigabyte range. The
SanDisk Extreme USB 2.0 reader is designed to transfer images as
quickly as possible.

SanDisk Extreme III cards use SanDisk-developed ESP (Enhanced
Super-Parallel Processing) technology that combines advanced NAND
flash memory chips and controller designs, 32-bit RISC processing
and leading edge algorithms for an architecture that streamlines
every aspect of read and write data transfer operations. In
addition, SanDisk works closely with major camera manufacturers to
ensure speed and compatibility. The ESP architecture effectively
removes the card as the bottleneck in data storage
applications.

SanDisk Extreme III cards have the industry's widest guaranteed
operating temperature range from a minus 13F (minus 25C) to a 185F
(plus 85C). The cards also include RescuePRO® software that allows
photographers to easily recover accidentally deleted images, lost
digital images or data.

Pricing and Availability

SanDisk Extreme III cards are available in CompactFlash, Memory
Stick PRO Duo™ and SD™ card formats.
Suggested retail prices for the two new capacities are:

Capacities

US$

Euros, Ex VAT

SanDisk Extreme III

12GB

$779.99

€475

December

16GB

$1,049.99

€633

December

SanDisk Extreme USB 2.0 Reader

$24.99

€22

November

SanDisk Extreme III cards carry a 10-year limited warranty in
Europe, the Middle
East and Africa but will have a lifetime limited warranty in the
rest of the world. Photographers who purchase the cards also will
have access to a dedicated toll-free number for technical support
questions. The RescuePRO image recovery software on the cards is
compatible with both Windows and Mac and requires no driver
download or special card reader.

SanDisk is the original inventor of flash storage cards and is
the world's largest supplier of flash data storage card products
using its patented, high-density flash memory and controller
technology. SanDisk is headquartered in Milpitas, CA and has
operations worldwide, with more than half its sales outside the
U.S.

Images of SanDisk products are available at http://www.sandisk.com/about-sandisk/media-kit
SanDisk, the SanDisk logo, SanDisk Extreme and RescuePRO are
trademarks of SanDisk Corporation, registered in the U.S. and other
countries. SanDisk is an authorized licensee of the SD trademark.
Memory Stick PRO Duo is a trademark of Sony Corporation. Other
brand names mentioned herein are for identification purposes only
and may be trademarks of their respective holder(s).

This press release contains certain forward-looking statements,
including expectations for new product introductions,
specifications, applications, markets, pricing, customer acceptance
and customers that are based on our current expectations and
involve numerous risks and uncertainties that may cause these
forward-looking statements to be inaccurate. Risks that may
cause these forward-looking statements to be inaccurate include
among others: market demand for our products may grow more slowly
than our expectations or there may be a slower adoption rate for
these products in new markets that we are targeting, and the other
risks detailed from time-to-time under the caption "Risk Factors"
and elsewhere in our Securities and Exchange Commission filings and
reports, including, but not limited to, Form 10-K and our quarterly
reports on Form 10-Q. We do not intend to update the information
contained in this press release.